Domestic demand soared because Covid-19 spread, dragging Vietnam's export rice price up last week

Vietnam and Thailand export rice prices have remained at the peaks for many years

Specifically, the price of 5% broken rice of Vietnam increased from 390 - 400 USD / ton last week to 400 - 405 USD / ton on Thursday (March 12), the highest level since November 2018.

According to a trader in Ho Chi Minh City, domestic demand has risen sharply in the past week as families flocked to buy rice to stockpile as anticipation of the new corona virus will continue to spread.

"This large stockpile has forced exporters to raise prices due to tight supplies," the trader said.

Vietnam's rice exports in the first two months of this year increased by 31.7% from a year earlier to 928,798 tons, according to customs data released on 11/3.

In Thailand, Thailand's 5% broken rice price reached US $ 470 - 495 per tonne on March 12, the highest level since August 2013, up US $ 10-28 per tonne from 460 to 467 last week.

"Many mills are refusing to sell due to uncertainty about the supply situation in this dry season," a rice trader in Bangkok said.

Parts of the world's second-largest rice exporter have been hit by drought and traders say higher prices are also reducing demand in foreign markets.

According to the Thai government, this year's dry season may be longer than normal, from April to June.

The currency devaluation caused Indian rice prices to fall for the third week in a row

In India, the export price of rice has extended the chain of decline because of the rupee depreciation despite strong demand from African countries.

Accordingly, the price of 5% broken parboiled rice of the world's leading rice exporters has decreased to 363 - 367 USD / ton this week compared to 367 - 371 USD of the previous week.

India's rupee traded near a record low on March 12, helping to boost exporters' profits from overseas sales.

"Demand has gradually improved from African countries. Prices are stabilizing because of a weak rupee," said B V Krishna Rao, president of the Rice Exporters Association (REA).

In 2019, India's rice exports were down 18.1% from a year ago to the lowest level in eight years, due to low demand from key buyers in Asia and Africa, according to key data. covered.

Meanwhile, neighboring Bangladesh may miss the target of 20 million tons in this year's Boro crop, as many farmers who cannot tolerate low prices have switched to other crops, the source said.

Boro contributes more than half of Bangladesh's annual rice production, about 35 million tons.

Link reference:https://vietnambiz.vn/nhu-cau-noi-dia-tang-vot-vi-covid-19-lay-lan-keo-gia-gao-xuat-khau-viet-nam-tang-trong-tuan-qua-20200314000426858.htm